Implication of Treasury Single Account on Banking Sector : Current School News

Implication of Treasury Single Account on Banking Sector

ADS! Download JAMB CBT Software Now for FREE!

Implication of Treasury Single Account on Banking Sector.

INTRODUCTION

At Present, developing and new economy emerging countries have massively engaged in the transition from manual to more computerized modus operandi in government activities, predominantly in the area of public fund management. Most renowned among them is the effort at reviving of the Treasury Single Account (TSA) policy. The effectiveness of the policy commenced through the Federal Government’s directive to all revenue – generating agencies to maintain single accounts with commercial banks.

Treasury Single Account is a public accounting system under which all government revenue, receipts and income are collected into one single account, usually maintained by the country’s Central Bank and all payments done through this account as well. The purpose is primarily to ensure accountability of government revenue, enhance transparency and avoid misapplication of public funds.

Section 80 (1) of the 1999  Constitution as amended states “All revenues, or other moneys raised or received by the Federation (not being revenues or other moneys payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.

In view of this section, successive governments have continued to operate multiple accounts for the collection and spending of government revenue in flagrant disregard to the provision of the constitution which requires that all government revenues be remitted into a single account. It was not until 2012 that government ran a pilot scheme for a single account using 217 ministries, department and agencies as a test case. The pilot scheme saved Nigeria about N500 billion in frivolous spending.

The success of the pilot scheme motivated the government to fully implement TSA, leading to the directives to banks to implement the technology platform that will help accommodate the TSA scheme. The recent directives by the Buhari Administration that all government revenues should be remitted to a Treasury Single Account is in consonance with this programme and in compliance with the provisions of the 1999 constitution (CBN, 2015).

REFERENCE

Akande, L. (2015), “Buhari orders Federal Ministries, Agencies to open Treasury Single Account”, Press Release, August 9.

Baumgartner, F. R., & Jones, B. D. (1993), Agendas and instability in American politics. Chicago, IL: University of Chicago Press.

Blomquist, W. (2007), The Policy Process and large-N Comparative Studies, In P. A. Sabatier (Ed.), Theories of the policy process (2nd ed., pp. 261-289). Boulder, CO: Westview.

Central Bank of Nigeria (2014), “Communiqué No. 94 of the Monetary Policy Committee Meeting,” March 24-25, Pp. 1-37.

Howlett, M., & Ramesh, M. (2003), Studying public policy: Policy cycles and policy. subsystems. Ontario: Oxford University Press

Iroegbu,C (2015),”Treasury Single Account ‘ll block leakages’, Vanguard, August 24, P38

Kingdon, J. W. (1995), Agendas, alternatives and public policies, New York, NY: Harper Collins.

Lindblom, C. E., & Woodhouse, E. J. (1993), The policy-making process, Upper Saddle River, NJ: Prentice Hall.

Mathias Okwe, Abuja. Chijioke Nelson, Temiloluwa Adeoye, David

Ogah(2015), Treasury Single Account: Giving Life to Jonathan’s ‘Dead’ Policy Directives’, Sunday Guardian, August 16,Pp52-58

Obinna, C.(2015), Banks Face Liquidity Strain as FG Fully Enforces Treasury Single

Account, Thisday Monday, 11 August,P52 Scott, R. J. (2010), The Science of muddling through Revisited. Emergence: Complexity &Organization, 12(1), 5-18.

Simon, H. A. (1997), Administrative behavior: A study of decision-making processes in administrative organizations (4th ed.), New York, NY: Free Press.

Smith, K. B., & Larimer, C. W. (2009), The public policy theory primer. Boulder, CO: West view.

Sun Editorial (2015), The new Treasury Single Account August 25, P17.

Vanguard Editorial (2015), Treasury Single Account: Bank deposits loss may hit N2trn, August 17,P 18

Join Over 5 Million Subscribers Today!


=> FOLLOW US ON INSTAGRAM | FACEBOOK & TWITTER FOR LATEST UPDATE

Tags: , , , , , , ,

Comments are closed.

%d bloggers like this: